Stanley Selling Hardware Business
Stanley Black & Decker has entered into a definitive agreement to sell its Hardware & Home Improvement Group (HHI) to Spectrum Brands Holdings Inc. for $1.4 billion in cash. The transaction is expected to close by the first quarter 2013.
With 2011 revenues of $940 million, HHI is a provider of residential locksets, residential builder’s hardware and plumbing fixtures. The company reports it holds #1 positions in U.S. residential locksets (Kwikset), Canada residential locksets (Weiser), luxury locksets (Baldwin), and U.S. builders’ hardware (Stanley/National Hardware).
Based in Madison, Wis., Spectrum Brands offers such products as Rayovac batteries; Farberware, George Foreman and Toastmaster small appliances; Hot Shot and Cutter home and garden products; and a variety of pet products.
“This is a good acquisition for Spectrum Brands that will increase total revenues to over $4 billion and add renowned brands with top market share positions in the growing and profitable hardware and home products business,” says Dave Lumley, Spectrum Brands CEO. “The scale and expanded product offering we gain will further balance our sales profile and provide exciting cross-selling opportunities from expanding sales of Spectrum Brands’ products to major U.S. home improvement centers and increasing HHI sales to leading global mass merchants and other Spectrum Brands’ retailers. Spectrum’s and HHI’s product lines are completely complementary, significantly expanding our portfolio of products. HHI will also give us an additional platform for global growth using our existing international infrastructure, as well as entry into the growing market of integrated residential security, fire and lighting solutions.”
“The sale of HHI is consistent with our strategy of strengthening our position as a diversified industrial company while maintaining the significant upside potential of a housing market recovery through our $5 billion CDIY portfolio," says John F. Lundgren, Stanley Black & Decker president & CEO. "While HHI is a healthy and profitable business, its characteristics are inconsistent with Stanley Black & Decker’s strategic objectives of diversifying our revenue base through further expansion into targeted end markets with higher growth and margin profiles, including emerging markets.”
Following the closing of the transaction, HHI will operate as a separate unit within Spectrum Brands and be managed by Greg Gluchowski, current president of the HHI Group at Stanley Black & Decker. He will report to Davud Lumley and continue to oversee HHI's experienced management team.
“We welcome Greg and his outstanding team from HHI. He is a proven leader, with a strong record of driving profitable growth and product innovation and development," Lumley says. "We look forward to Greg and his team playing strong roles in the continued growth and success of Spectrum Brands.”
“Spectrum Brands and HHI share the common goals of building and growing strong consumer brands with a dedication to innovative product design and technology,” adds Gluchowski. “We are excited to join the Spectrum Brands team, and look forward to being a strong and significant contributor to the overall business as we continue to grow HHI globally.”